Government Supports Antam Buying Freeport's Shares
Friday, 15 February, 2008 | 16:18 WIB

TEMPO Interactive, Jakarta: The State-Owned Enterprises State Ministry supported PT Aneka Tambang Tbk.'s (Antam) plan to buy 9.36 percent of PT Freeport Indonesia's shares that will be divested.

“I heard that Freeport wanted to divest 9.36 percent of its shares. If Antam is interested, why not?” said SOEs Minister, Sofyan Djalil, after opening a meeting of Antam's leaders in Jakarta yesterday (14/2).

As a response, Sofyan acknowledged having sent a letter to Finance Minister and Energy and Mineral Resources Minister, which contained the request of giving the first rights of refusal for mining SOEs. According to Sofyan, the government can appoint an SOE as the divested shares buyer. “Today (yesterday), I will send the letters,” he said.

Antam's Company Secretary, Bimo Budi Satriyo, confirmed that his company is interested to join bidding the Freeport's shares divestment. The Freeport's shares purchase analysis will be completed this year. The analysis will be performed by Macquarie as the company's financial adviser. “Because the gold mining acquisition program is expected to be executed this year,” he said.

During the meeting opening yesterday, Antam's Managing Director Dedi Aditya Sumanagara also stated the possibility of the acquisition. Not only Freeport, but also acquiring PT Newmont Nusa Tenggara. “Thanks to the government. This will also open Antam's chance to expand,” he said.

BNI Securities' analyst, Norico Gaman, predicted that Antam still has the opportunity to own Freeport's shares up to 20 percent by the current government's support.

Moreover, Freeport's divestment is part of conducting the Mining Decree on shares transfer to the Indonesian government. “But the acquisition takes time,” he said.

WAHYUDIN FAHMI